'The business of a partnership firm may be carried on by all the partners or any of them acting for all.'
Identify the feature of the partnership indicated by the above statement.
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Shift 25/05/2023 8:30 AM - 10:30 AM
Correct Answer
Detailed Explanation
The statement "The business of a partnership firm may be carried on by all the partners or any of them acting for all" indicates the feature of the partnership known as Mutual Agency.
In a partnership, each partner has the authority to act on behalf of the partnership and bind it to contracts and business transactions. This means that each partner has the power to represent the partnership, and the actions of one partner can affect the entire partnership, subject to the terms of the partnership agreement. This concept is known as mutual agency, and it is a fundamental characteristic of partnerships.
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